"Most franchise operators are businessmen, not mechanics," he said.

The records also show that several franchise operators complained about the system's effectiveness.

Mr. Grimaud and a group of other franchise operators put together an equity offer.

Mr. Sassoon also saw the writing on the wall for franchise operators.

The company gets 10,000-25,000 applications from potential franchise operators for 60-70 slots they open each year.

In McDonald's international division, local managers and franchise operators have long had substantial control over how they do business.

Few franchise operators in the United States pass the 100-unit market, "a big deal" in the industry, he said.

He turns down 1,000 calls from would-be franchise operators each month.

It is also used by many of the franchise operators, although these companies still prefer to use their own branding.

That saving would translate into lower rates for the franchise operators, who contribute to a chain's advertising and reservations costs.